How to Strike a Balance Between Your Investment: Risk vs ......How to Strike a Balance Between Your...

How to Strike a Balance Between Your Investment: Risk vs. Reward

By Alvin VongPeter Lim

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SPEAKER 1

Alvin Vong

Alvin is the Chief Executive Officer of EquitiesTracker Holdings Bhd, a listed company on the LEAP

Market of Bursa Malaysia Securities Berhad, is the creator of the current version of the

EquitiesTracker.com Research Portal and the EquitiesPortfolioManager Portal.

He is also the co-author of EquitiesTracker.com Value Investing and Portfolio educational series, which

is a structured course on Value Investing in the region. Equitiestracker.com currently provides

fundamental data of Malaysian, Singapore and Australian listed companies to international data

aggregators, investment banks and brokerages.

Alvin served on a board of an ASX listed company and has experience in fundraising. Alvin is currently

involved in tracking undervalued listed companies in Malaysia, Singapore & Australia and lectures

extensively on stock & crypto investing.

Alvin believes in long-term wealth creation via value investing and proper portfolio management

techniques.

He is a graduate of the University of Western Australia and has a degree in Accounting & Finance, plus

a Graduate Diploma in Information Technology.

Copyrights © 2000 - 2020 EquitiesTracker.com. All rights reserved. Reproduction in whole or in part without permission is prohibited.

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SPEAKER 2

Peter Lim Tze Cheng

Peter is the Head of Research of EquitiesTracker Holdings Bhd, a listed company on the LEAP Market of

Bursa Malaysia Securities Berhad.

In his previous engagements, he played the role of Chief Executive Officer, Head of Equity, and Head of

Research for local and foreign asset management houses.

He is also the author of What I Learnt As An Analyst, one of the best selling book on investments.

He is a graduate of the University of Malaya and has a degree in Accounting. He is also a Chartered

Accountant.


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This presentation is intended for educational purposes only and does not constitute the promotion of any financial product nor investment advice or arecommendation to trade or invest in any stock or security. Before making any investment decision, the Participant should consider the appropriateness of theinformation having regard to his/her own objectives, financial situation, needs and seek appropriate independent professional advice.

The contents in the presentation includes market and industry information and forecasts that have been obtained from internal surveys, reports and studies whereappropriate, as well as market research, publicly available information and industry publications or sources believed to be reliable. EQUITIESTRACKER.COM has usedits best endeavours to ensure the accuracy and reliability of the information provided, but neither EQUITIESTRACKER.COM nor its directors, employees, agents norrepresentatives makes any representation or warranty or assume any liability or responsibility for the accuracy, reliability, legality or completeness of suchinformation, and shall bear no responsibility for any reliance placed on such information. EQUITIESTRACKER.COM shall not be obliged to provide updates on suchinformation.

The Participant acknowledges that there are risks and uncertainties in investment of stocks or securities and no assurance of returns or preservation of capital. NeitherEQUITIESTRACKER.COM, nor its directors, employees, agents nor representatives shall be liable for any claims or damages whether direct or indirect, incidental,special or consequential including lost capital, lost revenue or lost profits that may arise from or in connection with the use of this information.

The Participant acknowledges that the information provided or contained in this presentation including the research report(s) are the property ofEQUITIESTRACKER.COM for which all rights are reserved. The Participant shall not reproduce, copy, redistribute, make available, transfer or sell any part of theinformation without the prior written consent of EQUITIESTRACKER.COM. The Participant agrees to indemnify and keep indemnified EQUITIESTRACKER.COM againstany liability, loss, action, or suit arising from my failure to fulfil this obligation.

The Participant agrees and acknowledges that the presentation is purely for its educational purpose and hereby:

(i) Irrevocably releases and discharges EQUITIESTRACKER.COM, its principals, directors, officers, employees and all sponsors and their representatives and employeesfrom any and all claims or causes of action for any liability, loss or damage howsoever caused from my their participation of the presentation or use of any informationcontained in the presentation;

(ii) Agrees to waive his/her right to bring any claim, suit or action against EQUITIESTRACKER.COM, its principals, directors, officers, employees, sponsors andrepresentatives for any act or omission whether done directly, indirectly, inadvertently or otherwise; and

(iii) Agrees to hold and continue to hold EQUITIESTRACKER.COM, its principals, directors, officers, employees, sponsors and representatives harmless against anyliability or loss.

Please read and understand the following disclaimer.

Disclaimer from the presenters


What can you trade on Bursa Malaysia

Profile of Products

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IndicatorPerceived

VolatilityWho Risk

Stocks High Business Managers Low/Medium/High

Exchange Traded

Funds (ETFs)Low Fund Managers Low/Medium/High

Real Estate

Investment Trust

(REITs)

Low Property Managers Low/Medium/High

Derivatives High You Low/Medium/High


Quotes from Warren Buffett

“Rule #1 : Do not Lose Money”

“Rule #2 : Don’t forget Rule Number 1”

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Risk Definition

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Source: investopedia.com

Types of Risk

• Investment Time Horizon

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Types of Risk

• Asset Class - stocks / bonds / real estate

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Types of Risk

• Portfolio Risk

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Types of Risk

• You - education, skills, experience & emotions

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What are the risks?

Why does it matter to you?

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Quotes from Warren Buffett

“Risk comes from not knowing what you’re doing”

“Never invest in a business you cannot understand”

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Risks when investing in stocks

Capital at Risk

vs.

Timing Risk

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Stock Categories

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Stock Categories

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IPO Returns

Case Studies

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Famous IPO Returns

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FANG IPO Returns

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CompanyIPO Date to 26

June 2020Total Return% CAGR%

Facebook 8 Years +465.21% 23.78%

Amazon 23 Years +137,291% 36.67%

Apple 39 Years +86,151% 18.63%

Netflix 18 Years +36,850% 38.60%

Tesla 10 Years +3,917% 44.68%

Nvidia 21 Years +24,151% 29.19%

FANG IPO Returns

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FANG IPO Returns

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Returns since IPO (Bursa)(IPO - June 2020)

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Company IPO DateYears since

IPO

Share Price

ReturnCAGR

Vitrox Sep 2005 14.8 years +6,751% 81%

MYEG Jan 2007 13.4 years +3,305% 83%

TopGlove Mar 2001 19.2 years +33,610% 72%

Hartalega Apr 2008 12.2 years +7,400% 107%

Inari Jul 2011 9 years +1,756% 129%

Emerging Grade Returns

Case Studies

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Bursa Malaysia Emerging Grade (10 Yr Returns)June 2010 - June 2020

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Company10 Year Share Price

Return %CAGR%

Vitrox +3,507% 126.2%

MyEG +986% 99.2%

TopGlove +826% 95.7%

Hartalega +1,731% 110.7%

Bursa Malaysia Emerging Grade (10 Yr Returns)June 2010 - June 2020

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Investment Grade Returns

Case Studies

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Bursa Malaysia Investment Grade Returns (10 Yr)(June 2010 - June 2020)

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Company10 Year Share

Price Return %

10 Year

Dividend

Return%

Total Return CAGR%

Public Bank +37.65% +48.66 +86.30% 6.42%

Maybank +0.40% +78.83% +79.22% 6.1%

Nestle +303.04% +78.21% +381.57% 17.02%

F&N +159.84% +61.46% +221.30% 12.38%

Genting -43.61% 22.31% -21.27% -2.36%

Bursa Malaysia Investment Grade Returns (10 Yr)(inclusive of Dividends)

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Did Modern Finance Defined Risk Correctly?

• Modern Finance Theory - Risk is “Beta”

• measurement of share price volatility against the market

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Source: tradingview.com

Did Modern Finance Define Risk Correctly?

What Are the Risks Investors Should be More Concerned With?

• Business Risk

• Sales

• Purchases

• Cost

• Labour

• Regulations

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High Risk, High Returns?

• Is Low Risk, High Return a fairytale?

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How to Strike a Balance Between Your Investment: Risk vs ......How to Strike a Balance Between Your...

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